Central Garden & Pet Company (CENTA): Business Model Canvas [Dec-2025 Updated]

As an analyst who's seen a few cycles, I can tell you Central Garden & Pet Company's model is fascinating: it's a two-pronged play across pet and garden that generated $3.1 billion in net sales for fiscal 2025, split between a $1.8 billion Pet segment and a $1.3 billion Garden segment. The real win here isn't just the scale; it's the discipline-they managed to expand gross margin to 31.9% by relentlessly executing their efficiency agenda, all while managing a balance sheet that includes about $1.2 billion in total debt. You'll want to dig into the canvas below to see exactly how they balance selling consumables versus durables, and how they manage that heavy reliance on big-box retailers to keep the engine running.

Central Garden & Pet Company (CENTA) - Canvas Business Model: Key Partnerships

Top pure-play and omnichannel retailers for distribution volume.

Central Garden & Pet Company sells through big-box retailers, nurseries, online retailers, grocery stores, retail chains, and mass merchants.

Raw material suppliers for seeds, grains, and other consumables.

• Central Garden & Pet Company purchases most raw materials from multiple suppliers.
• One raw material used to manufacture (S)-Methoprene is obtained from a single source of supply.
• Volatility in raw material costs, specifically for seeds and grains, remains a challenge.

Logistics and freight carriers for national distribution network.

Central Garden & Pet Company opened a new fulfillment center in Salt Lake City, Utah, on November 7, 2025, consolidating operations from legacy sites in Ontario, California, and Salt Lake City. This facility joins modern sites in Easton, Pennsylvania, and Covington, Georgia, to form the backbone of the nationwide logistics network. The company anticipates fiscal 2025 capital expenditures of approximately $60 million. Prior to recent centralization efforts, the company relied on LTL and truckload carriers, with a 2019 LTL bid saving just more than 9 percent compared to the historical average after unifying decision making.

Cal Athletics for brand promotion and pet welfare initiatives.

The partnership with Cal Athletics names Nylabone and Cadet as the official pet toys, chews and treats of Cal Athletics. As part of the collaboration, Central executives presented a $10,000 donation to the East Bay SPCA at Cal's football home opener. Separately, the Nylabone Cares™ initiative donated over $1.3 million to animal welfare in 2025.

Potential M&A and joint venture targets to fortify the portfolio.

Central Garden & Pet Company has completed over 60 acquisitions since 1992. The company's M&A priorities include building scale in core categories, entering priority adjacencies, and enhancing key capabilities. Central Ventures, established in 2020, supports this strategy, focusing on sustainability, health and wellness, and digitally connected products and services. The most recent acquisition mentioned was Leading Edge Associates on November 6, 2024. The company reaffirmed its fiscal 2025 non-GAAP EPS outlook to approximately $2.60.

Central Garden & Pet Company (CENTA) - Canvas Business Model: Key Activities

You're looking at the core engine room of Central Garden & Pet Company as of late 2025, focusing on what they actually do to generate their $3.1 billion in fiscal 2025 net sales. These activities are where the operational muscle is flexed.

Manufacturing and production of over 65 high-quality brands

Central Garden & Pet Company supports its two main segments, Pet and Garden, by manufacturing and distributing a diverse product portfolio. This portfolio is anchored by a collection of more than 65 high-quality brands across the home and pet categories. Some of these recognized brands include Nylabone, Kaytee, Farnam, Pennington, Aqueon, and Ferry Morse. In fiscal 2025, the Pet segment accounted for approximately $1.8 billion of the total net sales, while the Garden segment contributed approximately $1.3 billion.

Executing the multi-year Cost and Simplicity agenda for margin expansion

This agenda is a major focus, designed to simplify operations and strengthen margins through efficiency across procurement, manufacturing, logistics, portfolio management, and administrative functions. The execution is yielding measurable results in profitability. For the full fiscal year 2025, the gross margin expanded by 240 basis points, moving from 29.5% in fiscal 2024 to 31.9% in fiscal 2025. On a non-GAAP basis, the gross margin expansion was 210 basis points. This productivity focus is evident in quarterly results too; for instance, Q3 fiscal 2025 saw a gross margin expansion of 280 basis points, driven by these efforts. As part of this, Central recognized $15 million in non-GAAP charges during fiscal 2025, tied to these initiatives. A key milestone was largely completing the multi-year Supply Network Design project, which involved closing 16 legacy facilities to date.

Managing a complex, national distribution and logistics network

The company relies on its logistics footprint to move products efficiently. The completion of the Supply Network Design project specifically modernized the logistics footprint and enhanced customer alignment and service speed. The Pet segment's distribution network historically supported over 9,800 retailers and more than 6,400 veterinary offices. To support direct-to-consumer (DTC) capabilities, Central upgraded its Eastern Pennsylvania distribution center, which shipped over 10,000 packages directly to consumers in Q2 FY2025 alone. This network supports both proprietary brands and third-party partner brands.

Brand building and digital marketing to connect with consumers

Central Garden & Pet Company is actively working to connect with consumers through its Central to Home strategy, which includes investing in digital marketing to boost brand recognition. The digital channel shows significant contribution, with e-commerce sales making up 27% of pet sales in the second quarter of fiscal 2025. Since 2019, the company has grown its total digital sales at a compound annual growth rate of 8%, although this growth rate slowed to 3% in 2024.

Strategic acquisitions to build scale in core pet and garden categories

Acquisitions are a stated complement to organic growth in the pet and garden markets. The company's M&A priorities center on building scale in core categories, entering priority adjacencies, and enhancing key capabilities. Since 1992, Central Garden & Pet has completed over 60 acquisitions. The most recent public deal mentioned was a Merger/Acquisition with Leading Edge Associates on November 6, 2024.

Here's a quick look at the scale of the business in FY2025:

Central Garden & Pet Company (CENTA) - Canvas Business Model: Key Resources

Portfolio of more than 65 trusted brands

• Portfolio includes more than 65 high-quality brands.
• Examples include Nylabone®, Pennington®, Kaytee®, Amdro®, Aqueon®, Cadet®, C&S®, Farnam®, Ferry-Morse®, and Four Paws®.

Extensive North American manufacturing and distribution infrastructure

• Possesses strong manufacturing and distribution capabilities.
• Completed consolidation of two legacy distribution facilities into a single, larger, and more modern site in Salt Lake City, Utah, during fiscal 2025.
• Closed 16 legacy facilities during fiscal 2025 as part of strategic initiatives.

Dedicated workforce of over 6,000 employees

• Employs over 6,000 people, primarily located across North America.

Intellectual property and proprietary product formulations

Specific financial amounts related to intellectual property value are not explicitly detailed in the provided data points.

Strong balance sheet with $1.2 billion in total debt, below target leverage

Central Garden & Pet Company's year-end financial position for Fiscal 2025 (as of September 27, 2025) shows:

Central Garden & Pet Company (CENTA) - Canvas Business Model: Value Propositions

One-stop-shop for a wide range of pet and garden consumables and durables.

Central Garden & Pet Company offers a portfolio of more than 65 high-quality brands across its two segments, Pet and Garden.

The Pet segment net sales for the third quarter of fiscal 2025 were $493 million.

Trusted, high-quality brands from premium to value price points.

Key brands include Nylabone®, Kaytee®, Aqueon®, Pennington®, and Ferry-Morse®.

Innovative solutions focused on nurturing happy and healthy homes.

The company's fiscal 2025 non-GAAP gross margin expanded 210 basis points to 32.1%.

Supply chain reliability and enhanced service speed for retail customers.

Gross margin expanded 240 basis points to 31.9% in fiscal 2025, driven by productivity efforts from the Cost and Simplicity program.

The Pet segment non-GAAP operating margin expanded by 150 basis points to 14.5% in Q2 fiscal 2025, driven by productivity improvements including streamlining procurement, manufacturing, and logistics.

Commitment to social impact, like the $1.3 million in Nylabone Cares donations in 2025.

Nylabone Cares donated chew toys and treats valued at more than $1.3 million, plus monetary contributions, to animal welfare organizations in 2025.

• Nylabone donated over 100,000 durable chew toys to U.S. animal shelters throughout 2025.
• The CHEWS for Good™ initiative aimed to donate up to a total of 25,000 toys to dogs in Best Friends Animal Society-affiliated shelters through December 31, 2025.

Central Garden & Pet Company (CENTA) - Canvas Business Model: Customer Relationships

You're looking at how Central Garden & Pet Company manages its connections with the people and businesses buying its products as of late 2025. It's a mix of deep partnership and transactional efficiency across different channels.

Dedicated account management for top-tier omnichannel retail partners.

Central Garden & Pet Company focuses on its winning channels, which include e-commerce and major big-box customers. The company maintains very strong partnerships with key accounts like Walmart and Costco. This high-touch approach supports the Pet segment, which serves nearly 10,000 retailer locations and over 5,600 veterinary offices. The overall fiscal 2025 net sales for the entire company were $3.1 billion.

Automated and digital marketing to drive consumer brand loyalty.

The strategy heavily leans on digital capabilities to connect directly with consumers, supporting the overall Central to Home strategy. This involves enhanced digital capabilities, retail media strategies, and data analytics reinforcing the online presence. New products and improved digital engagement drove share gains in the Pet segment's e-commerce channel.

Here's a look at the digital channel performance across the fiscal year 2025 reports:

Transactional relationships with smaller independent distributors.

The relationship structure varies based on the customer size and channel. For smaller entities, the relationship is more transactional. The majority of smaller companies lack a captive sales and logistics network, relying on Central Garden & Pet Company or other independent distributors to supply products to regional pet specialty chains and independent retailers. Strategically, the company has been streamlining its footprint, including the sale of the garden distribution business to the independent channel. Furthermore, Central began winding down its UK operation in fiscal 2025, transitioning to a direct-export model for customers in the UK and select other European markets, resulting in initial costs of $5.3 million.

Self-service and e-commerce platforms for direct online purchasing.

Central Garden & Pet Company is actively strengthening its direct-to-consumer (DTC) and e-commerce channels through infrastructure investment. The company upgraded its Eastern Pennsylvania distribution center specifically to enhance DTC capabilities, shipping over 10,000 packages directly to consumers. The company is also focused on supply chain modernization, which established enterprise-wide eCommerce fulfillment capabilities.

Key operational metrics related to direct fulfillment include:

• Upgraded Eastern Pennsylvania DC to boost DTC shipping.
• Shipped over 10,000 packages directly to consumers from the new DC.
• Pet segment sales were $1.8 billion for fiscal 2025.
• Garden segment sales were $1.3 billion for fiscal 2025.

Central Garden & Pet Company (CENTA) - Canvas Business Model: Channels

Central Garden & Pet Company sells its products through a multi-faceted distribution network across its Pet and Garden segments. The company's consolidated net sales for fiscal 2025 were $3.1 billion. The Pet segment accounted for approximately $1.8 billion of this total, while the Garden segment contributed about $1.3 billion in net sales for fiscal 2025.

The distribution strategy heavily relies on large-scale retail partners, supplemented by a growing digital presence and specialized outlets. The company completed its multi-year Supply Network Design project in fiscal 2025, which enhanced customer alignment and service speed across logistics. This project also established enterprise-wide eCommerce fulfillment capabilities.

The reach into the pet retail space is extensive. The Pet segment supports nearly 10,000 retailer locations and over 5,600 veterinary offices, demonstrating a broad physical footprint for product placement.

E-commerce is a significant component, particularly within the Pet segment. For the pet sales channel, e-commerce accounted for 27% of those sales as of the second quarter of fiscal 2025.

Strategic channel adjustments occurred in fiscal 2025, including the sale of the garden distribution business to the independent channel. This action streamlined operations, aligning with the Cost and Simplicity agenda.

Here's a breakdown of the scale and composition of the channels based on available segment and channel data:

The distribution network supports a wide array of customer types, which can be categorized as follows:

• Large format retailers served by the Pet segment: nearly 10,000 locations
• Professional/Specialty Pet outlets: over 5,600 veterinary offices
• Pet segment sales via e-commerce: 27% of segment revenue
• Total consolidated net sales for fiscal 2025: $3.1 billion

Central Garden & Pet Company (CENTA) - Canvas Business Model: Customer Segments

You're looking at the customer base for Central Garden & Pet Company as of the close of fiscal year 2025. This company serves two primary end-user groups: pet owners and home gardeners across North America. The overall scale of the business is significant, with fiscal 2025 consolidated net sales reaching $3,129.1 million.

The customer segments are served through a mix of channels, which is reflected in the revenue split between the two main operating divisions:

The Pet segment, which brought in approximately $1.8 billion in net sales for fiscal 2025, supports a vast network of retail points. This network includes nearly 10,000 retailer locations and over 5,600 veterinary offices, showing a deep penetration into the pet care ecosystem.

For the large-scale omnichannel and pure-play e-commerce retailers, the digital channel is a critical touchpoint. Specifically within the Pet segment, e-commerce accounted for 27% of that segment's sales in fiscal 2025, demonstrating a clear reliance on digital shelf space and direct-to-consumer fulfillment capabilities.

The independent pet and garden specialty retailers form another core group. While specific sales figures segmented by independent versus mass-market are not publicly broken out in the top-line results, the overall distribution footprint mentioned above covers these smaller, specialized outlets. The company is headquartered in Walnut Creek, California, with employees primarily across North America.

Regarding wholesale distributors in the lawn and garden market, Central Garden & Pet Company has been strategically reshaping its channel focus. This is evidenced by the strategic exit from the pottery business and the sale of the garden distribution business to the independent channel, which signals a shift away from certain traditional wholesale distribution roles to focus on higher-margin branded product sales.

• The company is refining its international strategy, transitioning its UK Pet segment operations to a direct-export model starting in Q2 fiscal 2025, moving away from direct UK operations.
• Fiscal 2025 operating income for the Pet segment was $216 million, and for the Garden segment, it was $142 million.
• The overall gross margin for fiscal 2025 improved by 240 basis points to 31.9%.

Central Garden & Pet Company (CENTA) - Canvas Business Model: Cost Structure

The Cost Structure for Central Garden & Pet Company is heavily weighted toward the direct costs of its products, though operational efficiency initiatives are actively managing overhead.

Cost of Goods Sold (COGS) represents the most significant outlay. For fiscal 2025, Central Garden & Pet Company reported consolidated net sales of $3.1 billion, with a reported gross profit of $997.3 million, resulting in a gross margin of 31.9%. This implies an approximate COGS of $2,102.7 million for the full fiscal year 2025 ($3.1 billion Net Sales minus $997.3 million Gross Profit). The Cost and Simplicity agenda impacted these figures, with non-GAAP gross margin improving 210 basis points to 32.1% when excluding approximately $6 million in facility closure charges in fiscal 2025.

Selling, General, and Administrative (SG&A) expenses show disciplined management, though they fluctuate relative to sales volume. For the third quarter of fiscal 2025, SG&A expense was $197 million. On a full-year basis for fiscal 2025, total SG&A expenses decreased 1.5% from the prior year to $747.3 million. Due to lower net sales in Q3 FY2025, SG&A as a percentage of net sales increased by 30 basis points to 20.5%.

Logistics and distribution costs are embedded within COGS and SG&A, with strategic investments influencing the structure. The company is actively managing its footprint, having incurred initial costs of $5.3 million in Q2 fiscal 2025 related to winding down UK operations, which included $4.4 million in COGS and $0.9 million in SG&A costs, all non-cash.

Raw material procurement costs are a key variable. The fiscal 2026 outlook incorporates current assumptions around inflation in certain commodity categories. This sensitivity is evidenced by the fiscal 2024 impact on the Garden segment, which involved a write-down of approximately $20 million on grass seed inventory due to market price decreases and industry oversupply.

Capital expenditures (CapEx) are targeted for facility and productivity investments. Central Garden & Pet Company anticipated fiscal 2025 capital expenditures to be in the range of $50 million to $60 million. These expenditures are focused on maintenance, productivity, and targeted growth initiatives across both the Pet and Garden segments.

Here's a breakdown of key cost-related metrics for fiscal 2025:

The company's focus on efficiency is reflected in the following operational cost control points:

• Cost and Simplicity program drove margin expansion.
• Non-GAAP gross margin of 32.1% excluding $6 million in charges.
• Total debt leverage ratio ended the year at 2.8x.
• Cash and cash equivalents balance reached $882 million at year-end.

Central Garden & Pet Company (CENTA) - Canvas Business Model: Revenue Streams

You're looking at the core ways Central Garden & Pet Company brings in money based on their late 2025 financial reporting. The revenue streams are clearly segmented across their two main business areas, Pet and Garden.

For the full fiscal year 2025, Central Garden & Pet Company reported total net sales of $3.1 billion. This total is derived from the two primary operating segments, which show a slight overall revenue contraction year-over-year.

Here is a breakdown of the segment performance for the full fiscal year 2025:

Within these segments, the nature of the products sold dictates the revenue predictability. Central Garden & Pet Company relies on a mix of repeat purchases and larger, less frequent buys.

Key revenue types include:

• Sales of consumables (e.g., seeds, feed, controls) are a key recurring revenue source.
• Sales of durable goods (e.g., aquatics, feeders, chews).

To give you a sense of the quarterly flow, which impacts inventory and working capital management, the segment sales looked like this in the later quarters of fiscal 2025:

For example, in the fourth quarter of fiscal 2025, Pet segment sales were $428 million, while Garden segment sales were $250 million. This contrasts with the third quarter, where Pet sales were $493 million and Garden sales were $468 million. The variation shows how seasonal demand in Garden and inventory timing in Pet affect the quarterly top line.

Finally, the company has been actively managing its portfolio, which impacts revenue from services outside of direct product sales. Central Garden & Pet Company has been streamlining operations, which included exiting certain lines of business. Specifically, net sales for the Garden segment in Q3 2025 were impacted by the loss of two product lines in Central's third-party distribution business. This suggests that revenue from third-party distribution services is a diminishing, or at least actively managed, component of the overall revenue streams as of late 2025.